The Myriad Reasons Why Qualcomm Stock Is a Buy

Investors appear concerned with Qualcomm (QCOM) losing a huge chunk of revenue due to Apple’s plan to proceed with building an iPhone modem in-house. However, Tigress analyst Ivan Feinseth sees Read More... The post The Myriad Reasons Why Qualcomm Stock Is a Buy appeared first on TipRanks Financial Blog.

The Myriad Reasons Why Qualcomm Stock Is a Buy

Investors appear concerned with Qualcomm () losing a huge chunk of revenue due to Apple’s plan to proceed with building an iPhone modem in-house. However, Tigress analyst Ivan Feinseth sees plenty of reasons why Qualcomm will “continue to benefit from global smartphone demand growth and ongoing chip demand for high-speed 5G global communications networks.”

The 5-star analyst expect 5G’s global rollout will result in “increasing Return on Capital, greater Economic Profit, and increasing long-term shareholder value creation.”

Feinseth, therefore, reiterated a Buy rating on QCOM shares and set a price target of $195. Investors could be sitting on gains of 38%, should Feinseth’s forecast play out over the coming months. (To watch Feinseth’s track record, )

While Qualcomm is an undisputed smartphone chip leader, outside its core communications market, it continues to diversify into new ones. Feinseth expects the non-communication endeavors to generate over $10 billion in revenue annually.

One such market the company is making a dent in, is that of the automotive industry, where to meet the surge in demand for onboard processors, Qualcomm is ramping up production. Automotive applications using QCOM processors include ADAS (Advanced Driver-Assistance Systems) where the 2020 launched Snapdragon Ride is making waves, and cloud and edge computing. The company has also notched development partnerships with over “30 industry-leading OEMs,” from where QCOM processors go toward wireless internet homes and business gateways.

There’s also the potential acquisition of autonomous vehicle technology company Veoneer to look forward to. Qualcomm recently announced an all-cash bid to acquire the company for just under $4.5 billion funded with available cash and without the need for extra financing.

“QCOM’s significant resources and R&D capabilities enable it to maximize the value of Veoneer’s existing technologies and enable greater development of new and more advanced automotive technology capabilities,” Feinseth noted.

Should Venoeer come onboard, the company will follow in Nuvia’s footsteps. Qualcomm closed the acquisition in March, paying $1.4 billion for the high-performance processor Systems on a Chip (SoC) design company.

Talking of investments, the company’s enviable cash position - as of June 2021, QCOM had $11.28 billion ($9.99 per share) in excess cash – will enable Qualcomm to “continue to drive investments in innovation, and strategic, complementary acquisitions that will further its leadership position and continue to drive revenue growth and profitability.”

So, that’s Tigress’ bullish outlook, but what does the rest of the Street have in mind for the chip giant? About the same, as it happens. The analyst consensus rates this stock a Strong Buy, based on 11 Buys vs. 2 Holds. There’s decent upside in the cards too; going by the $186.25 average price target, shares will appreciate ~32% over the coming months. (See Qualcomm stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post The Myriad Reasons Why Qualcomm Stock Is a Buy appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

Analysts Offer Insights on Technology Companies: Salesforce (CRM) and Airbus Group SE (OtherEADSF)

Analysts have been eager to weigh in on the Technology sector with new ratings on Salesforce (CRM – Research Report) and Airbus Group SE (EADSF – Research Report). Salesforce (CRM) Norddeutsche Landesbank analyst Wolfgang Donie maintained a Hold rating on Salesforce yesterday and set a price target of $275.00. The company's shares closed last Tuesday at $254.37. According to TipRanks.com, Donie is ranked #4475 out of 7641 analysts. Salesforce has an analyst consensus of Strong Buy, with a price target consensus of $303.32. See today’s analyst top recommended stocks >> Airbus Group SE (EADSF) Credit Suisse analyst Neil Glynn maintained a Buy rating on Airbus Group SE yesterday and set a price target of EUR137.00. The company's shares closed last Tuesday at $131.50, close to its 52-week high of $141.50. Glynn has an average return of 4.6% when recommending Airbus Group SE. According to TipRanks.com, Glynn is ranked #6360 out of 7641 analysts. Airbus Group SE has an analyst consensus of Moderate Buy, with a price target consensus of $161.77, implying a 21.6% upside from current levels. In a report issued on September 7, Deutsche Bank also assigned a Buy rating to the stock with a $131.00 price target. TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities. Read More on CRM: The Myriad Reasons Why Qualcomm Stock Is a Buy “Check Out What Amazon’s Up To Now!” Says BofA Analyst Doubles Down Bet on Nasdaq’s Hottest Stock JD.com Stock: Where to Go after August Rally BABA Stock: Is Charlie Munger Error-Free with Alibaba? The post Analysts Offer Insights on Technology Companies: Salesforce (CRM) and Airbus Group SE (OtherEADSF) appeared first on TipRanks Financial Blog.

Analysts have been eager to weigh in on the Technology sector with new ratings on Salesforce (CRM – Research Report) and Airbus Group SE (EADSF – Research Report).

Salesforce (CRM)

Norddeutsche Landesbank analyst Wolfgang Donie maintained a Hold rating on Salesforce yesterday and set a price target of $275.00. The company's shares closed last Tuesday at $254.37.

According to TipRanks.com, Donie is ranked #4475 out of 7641 analysts.

Salesforce has an analyst consensus of Strong Buy, with a price target consensus of $303.32.

Airbus Group SE (EADSF)

Credit Suisse analyst Neil Glynn maintained a Buy rating on Airbus Group SE yesterday and set a price target of EUR137.00. The company's shares closed last Tuesday at $131.50, close to its 52-week high of $141.50.

Glynn has an average return of 4.6% when recommending Airbus Group SE.

According to TipRanks.com, Glynn is ranked #6360 out of 7641 analysts.

Airbus Group SE has an analyst consensus of Moderate Buy, with a price target consensus of $161.77, implying a 21.6% upside from current levels. In a report issued on September 7, Deutsche Bank also assigned a Buy rating to the stock with a $131.00 price target.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Read More on CRM:

  • The Myriad Reasons Why Qualcomm Stock Is a Buy
  • “Check Out What Amazon’s Up To Now!” Says BofA
  • Analyst Doubles Down Bet on Nasdaq’s Hottest Stock
  • JD.com Stock: Where to Go after August Rally
  • BABA Stock: Is Charlie Munger Error-Free with Alibaba?

The post Analysts Offer Insights on Technology Companies: Salesforce (CRM) and Airbus Group SE (OtherEADSF) appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.